Founded in 1976, Raffles Medical Group has grown to be Singapore's largest private group practice operating a network of family medicine clinics, a tertiary care private hospital, insurance services and a consumer healthcare division serving over 1 million patients and 5,500 corporate clients today. (For a recent fundamental analysis of RMG, refer to Singapore Investor's blog post entitled Raffles Medical Group.)
Since making the triple bottom in Jan - Feb, Raffles Medical Group has been on an uptrend. From the chart below, it is clear that prices are moving in a channel and that prices are currently at the bottom of it. As the trend is your friend, this may provide a good buying opportunity for traders who are looking to get into this stock and eager to ride the major trend.
The weekly chart below shows a clearer picture of this uptrending channel.
Turning to the chart below, current support seems to be the 14 day moving average at $2.36. Indicatorwise, Stochastics, MACD, OBV and MFI all seem to be turning up. Positive DI of the ADX looks set to cut the negative DI indicating buying momentum. Parabolic supports this. These could indicate that prices are going to move up further in attempt to challenge resistance at $2.44 before taking on its 52-week high at $2.52. Trend strength however is lacking. RSI too, seems to be making a lower high which may indicate a pullback in price in the short term to the 14dma. A dip below the 14dma, could see prices moving to its previous support at $2.32, and $2.30 thereafter. A break below $2.30 could signal the end of its uptrend and could send prices down to its next support at $2.24. A stop loss would prove most useful due to the uncertainty.
My take: Personally, with a P/E of 33, yield of only 1.4% and price to book ratio of 4.6, despite a goal of holding the stock for the long term, the stock is too expensive. Shall wait for a crash to bring prices down before investing in it. Will use the time to save up for that chance when it presents itself.
In the short term, prices may pull back to its 14dma which would provide a favourable entry point. Also, the mini-trend starting on the 1st of Dec sees the stock making higher lows, and as the market sentiment seems to be getting more bullish, I expect prices to head higher soon.
Not vested,
~K
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